market for Captain Morgan

market for Captain Morgan

In 1654 and while in his tender ages, Henry Morgan left his native home in Wales and traveled to West Indies. Since he had the leadership qualities, he managed to become Captain Henry Morgan quickly and was very famous in the Caribbean. In later centuries, Captain Morgan was able to become very famous. In the 1940s, a drinking company known as Seagram arrived in the Caribbean, and it was mesmerized by the opportunities presented by the spiced Rum. The Seagram’s drinking company promptly became the king of the Rum in the world and further developed a network for trading relationships in the region, and this is what resulted in the formation of Captain Morgan Rum Company in 1945. Captain Morgan is a global brand that deals with alcoholic beverages. The brand is produced and manufactured by a multinational company known as Diageo, which is considered the largest producer of spirits and beers in the international market. Captain Morgan is a renowned brand of Rum, and it was named after Sir Henry Morgan, who was a Welsh Privateer. The first introduction of the brand took place in the year 1944, and the country of origin for the brand was the United States. In terms of volume, currently, Captain Morgan occupies the second spot in the United States and holds the seventh position in the global market. Captain Morgan, as a brand, also has competitors encompassing Bacardi Rum, Tanduay Rum, and Havana Club. It was not long before the infamous spiced Rum for Captain Morgan to be famous throughout the Caribbean. It was first launched in 1983, and it only took ten years for Seagram’s to change over one million cases of the original spiced Rum. The brand Captain Morgan was sold to Diageo in 2001. Diageo is known as the world-famous drinks company, and later in 2008, Diageo announced its re-launch and re-branding strategy. In 2012 Diageo had sold over ten million cases internationally for Captain Morgan brand, and it was then considered the sixth alcoholic spirit to do so. Currently, Captain Morgan is deemed to be the second-best Rum in the world after Bacardi with its main markets in Canada, the US, Europe, and the United Kingdom (UK). Manufacturing of Rum involves the slicing of the central stem of the sugar cane into minor pieces in sugar mills crushed between larger rollers to produce sweet juice. The process of boiling the juice removes the water, only leaving behind sugar for crystallization.

The Market

The focus market for Captain Morgan encompasses men of the average ages of 21-34. These men are often college graduates, and they come from a household with a yearly income of $60,000-$74,000 a year. Most of the individuals from this population are not married and work in natural resources, maintenance, and natural resources. As a means of advertisement, captain Morgan uses humor to stress the relevance of getting home safely after drinking, and hence it is viewed to create more fun by the consumers. On most parties in the United States, Captain Morgan is carried since every man who drinks Captain Morgan is likely to be accompanied home with the prettiest girl. Since both men and women are frequently turning 21 every day, the brand is expanding its market due to the increasing number of the audience. The newly incorporated legal consumers always try new brands in a variety of drink combinations. Captain Morgan is, therefore, interested highly in targeting the new-legal drinkers.

The demographic population of interest comprises men and women who fall between the age of 21 and 34 and are never married hence always willing to spend while buying drinks for parties and enjoyment. The population targeted is employed in natural resources and construction or maintenance, and their household income is above $60,000. The populations of men between the ages of 21-34 who are likely to drink Captain Morgan are roughly 115 percent. Breaking it down to household income, 38% percent more of the household income of $60,000-$74,000 are likely to consume Captain Morgan. The population of both men and women who are working in natural construction and maintenance sites or natural resources takes up 41% of the target population, which is likely to use Captain Morgan. 58% of the populations who are never married are likely to consume Captain Morgan since they are not faced with a lot of restrictions and responsibilities.

The consumers of Captain Morgan are most interested in video games and sports and are most likely to assemble in clubs while taking a bottle of Captain Morgan. The consumers also tend to follow news on sports and video games through TVs, online, and print. The patterns of drinking Captain Morgan can be categorized into different sports matches with game informer and those watching Hockley leading at 158%. The consumers also visiting the social sites to follow on the sports events follows at 127% more than those who follow in magazines. The majority of the consumers of Captain Morgan in the United States and other European nations are the whites and educated males in their mid-twenties. The category of the consumers buys a bottle every evening, especially after work. A few of the population in the older ages, such as above 50 years, purchases the brand.

The educated males in their 20s purchase Captain Morgan due to its cost and the quality offered and most of the customers view Captain Morgan as a brand for fun, which is suitable for parties, especially the pirate parties. The consumers of Captain Morgan are sports fans and like using their mobile phones while watching sports, and they are often accompanied by a large group of friends who join to have fun together. Captain Morgan drinkers are viewed as energetic and outgoing and regularly talk to other people in the bar as they buy drinks for one another. The consumers for Captain Morgan mostly are the residence of the Midwest considered as the medium-sized counties and the top markets for media, and 38 percent are likely to drink Captain Morgan.

To keep up with the new generation of consumers, Captain Morgan’s advertisements have changed. Captain Morgan first monitors the environment to avoid missing the fact of all the ages. Initially, Captain applied an ad with a cartoon version, but this was only appealing to children, and this is considered socially unacceptable. The current advertisement has a conspicuous headline written, “Go up to a girl and Whisper “Yo-Ho-Ho.” The man is whispering into the ear of a beautiful woman who is carrying a bottle of Captain Morgan.

Environmental Factors

Different policies and laws are put in place to guide the operations of the company and control the advertisement of the Captain Morgan brand as a product that has alcoholic content. Such restrictions formulated aim to protect the consumers who are below the legal age of drinking. The laws and policies vary depending on the state law and ordinance or can be executed voluntarily by event, business, or organization. Specific restrictions are affecting the operations of the company dealing in the brand of Captain Morgan Rum. The policies formulated to ban ads in kiosks, buses, supermarkets, and billboards severely interfere with the progress of the company. Advertising is prohibited, or in certain situations, it is limited at community events like parties, festivals, rodeos, sporting events, and concerts. Captain Morgan is also obliged to examine laws such as banning advertisements in places surrounding schools, residential areas, and faith organizations. The governments where the companies manufacturing Captain Morgan brand sometimes prohibit or restrict TV and radio commercials. Alcohol advertising in newspapers is limited, and sometimes this extends even to the advertisement on the internet countering alcohol ads accompanied by announcements from the public service. All the ads on alcohol in the local media are required to involve warnings on the health risks on the consumption of alcohol. Setting the limit for the advertising space for all the alcohol ads adversely affects the market reach for the Captain Morgan brand. Another policy that dramatically affects the promotion of the brand is the reduction in the number of alcohol billboards within the marginalized neighborhoods. The company dealing in Captain Morgan’s brand must always ensure that they circumvent possible statements and images which portray or promote intoxication. In 2009, Captain Morgan tried an “ambush marketing” campaign in which the NFL players to strike the pose by Captain Morgan after scoring a touchdown. The strike severely affected Captain, and this is why Captain Morgan must observe restrictions and laws provided by every agency with which they are working before developing a campaign. Sometimes promoters are arrested when they dress like Captains since they are presumed to be under the influence of alcohol. With the increasing consumption of alcohol in America, the government has formulated strong policies aiming to resolve the issue by enforcing numerous regulations on alcohol manufacturers regarding the distribution and advertising of alcoholic products. The increasing advancement of technology affects the operations of Captain Morgan since it defines how they communicate with their domestic and global customers.

Distribution Channels

Captain Morgan uses television channels and print media to target the new legal users of alcohol in the market. Captain Morgan also promotes the brand on Twitter, blogs, and Facebook through most users who frequently use these sites can be reached. The Facebook page used also has a host list that is used to highlight the posts and photos from fans, latest promotions, and fun recipes. Twitter and Facebook are majorly used by Captain Morgan to interact with the consumers and also allows the fans to interact with one another. The interaction of the fans across the world is enhanced through Facebook and Twitter, and this allows the customers to form a network or a community that might not exist. The primary distributor for Captain Morgan’s product is Diageo. At the domestic level, Captain Morgan can be found in online sites like eBay and Amazon, at the bar and online sites from beverage distributors. Captain Morgan can also be found at certain grocery stores, beverage distribution centers, and international wines and spirits stores. Another campaign used to reach the consumers is known as the “one Million Possess,” which is a multi-faceted platform of participation which developed a unifying role. The campaign encourages athletes, fans, and celebrities to join the Captain on his aim to inspire. The customers participated through uploading photos or videos on Facebook. To make the brands readily available to the consumers, Captain Morgan’s brand has a well-articulated policy for distribution formulated and encompasses retailers, distributors, and dealers. Most of Captain Morgan’s products are sold through its outlets. The company has also established tie-ups with other brands, and hence all the products for Captain Morgan are also available in other brand outlets. In modern society, it is also possible to purchase Captain Morgan products through different online stores. The products tend to be a bit cheaper since discounts are provided together with other benefits to attract the attention of the new customers.

Promotional Mix

Captain has begun using To Life, Loot, and Love as their slogan since 2011. Initially, they were using “Drink Responsibly- Captain’s Orders. The Captain Morgan brand has developed different measures to establish and maintain product awareness via diligent activities of promotion. Captain Morgan mascot has enhanced its visibility since its introduction in the market. The company has used all the advertisement tools available such as Facebook and Twitter effectively, to target the customers in the market and to compete effectively. Different parties have been hosted and also media campaign has been formulated to make the brand more accessible and expand the market base both domestically and internationally among all the customers. Most of the ads used to promote Captain Morgan are aired on television, and sometimes they are displayed on billboards and different business magazines. The online industry, through the support of internet connection, has been used by Captain Morgan’s brand to target the middle age customers who are also the frequent users of these online sites. Captain Morgan has also strategized accordingly to gain domestic and international recognition. Through gaining recognition, the company can sell its products in all corners of the world. The currents strategy used to obtain credit involves sponsoring various international and domestic basketball teams to interact with sports fans.

Captain Morgan does not consider introducing improved or new products into the market. Instead, the company mainly focuses on the re-introduction of the product to customers and the modern audience. Currently, the company has numerous products outside the original spiced Rum such as Lime, Tattoo, Bite, and Parrot Bay. The promotional campaign mainly targets the sale of the original spiced Rum but not the other three brands. Captain Morgan has numerous promotional programs, and these take place in bars and all other sporting events. According to the information obtained on the demographic data, most of the consumers of the brand are interested in sports, and it is believed that apart from retaining the present customers, a strong promotional presence in all sporting events will attract new customers. Coupons are not available for all the products for Captain Morgan due to the present state legal issues and policies. The alcohol laws for the state vary when it comes to the issue of coupons, and this is why Captain Morgan does not use coupons in marketing their products. Captain Morgan present samples of the liquor at the promotional events at the sporting events and bars to attract new customers.

Pricing

The pricing policy for Captain Morgan is very open since the brand has different variants in the market. Through the options, the prices for each product are determined after continuous valuation and research. Captain Morgan has designed its products to be of premium quality and has formulated a policy for pricing. The pricing policy is established with a variety of premium prices with a meaningful tone. There is always a lot of competition from other brands for the Captain Morgan brand. Hence, market analysis and comparison must be made with the competitors’ brands. Due to the stiff competition in the alcohol industry, Captain Morgan keeps its prices at a level that can compete with the rivals within the industry. The purpose of maintaining the prices at a competitive level is to maintain the customer’s loyalty and expand on the market base. Customer loyalty is achieved when the customers are satisfied with the quality of the brand, but it has been indicated that prices also play a significant role. When the customers are provided with reasonable prices for a brand, the overall sales for the brand will increase both in the short and long run since the customers are satisfied. Captain Morgan has different products for the same brand, and they cannot all have the same prices. Price is determined by the class of the consumers who are going to use the product. Therefore, prices are different for every product since even the costing is not similar. In terms of price, Captain Morgan is mid-range Rum. Due to the reasonable price point, several consumers choose Captain Morgan over other expensive brands. The original spiced Rum is not just viewed as a “top shelf,” but the other brand extensions often allow consumers to select an increased price point if any case they need the brand. In such a case, the customers can choose to purchase the private stock variety, which is a bit costly as compared to the original spiced Rum.

General Observations

The marketing plan for Captain Morgan has been thriving since it has managed to compete effectively with the competitors. Then experience that the customers have with the brand has increased the sales of the brand, especially for parties and the customers going for dates. The most successful marketing program by the company is the continuous use of Facebook and Twitter, where the customers interact frequently. The consumers for Captain Morgan are between the ages of 21-34, and hence they tend to use social media regularly, which makes the marketing plan perfect for the frequent visitors for these sites. The sales promotion performed in bar and sports events in the entire world has also contributed to the success of the brand since these are the places where the target consumers are located. Several men and women who consume Captain Morgan often gather in a bar and sporting events; hence, they get the opportunity to have a taste of the brand, which further attracts their attention to purchase the product. The brand cost level prices according to the needs of the customers, and this has contributed to the increased sales of the brand since it is affordable to all categories of the customers in both the global and domestic markets.